DBS is the only company that maintains COSCO International (00517-HK) buying ratings, with a target price of HK$5.09.

The bank said that although the profit contribution from the new business was only HK$20 million to HK$25 million, which is not particularly high, this move kicks off the injection of more assets; the bank expects that the parent company will inject other marine fuel supply business into it in the near future, including business related to COSCO Investment (Singapore) and marine fuel supply business in mainland China.

Furthermore, the current stock price of the stock is 37% off from the value calculated by the bank based on the sum of valuations of various parts, which is equivalent to 7 times the price-earnings ratio predicted for FY2010; the bank believes that the stock's valuation is remarkable.

COSCO International rose 2.80% yesterday to close at HK$3.31.